Blank Check Preferred Stock

Blank Check Preferred Stock

This is stock over which the board of directors has broad authority to determine voting, dividend, conversion, and other rights. While it can be used to enable a company to meet changing financial needs, its most important use is to implement poison pills or to prevent takeovers by placement of this stock with friendly investors.

Blank Check Preferred Stock

An amendment to the charter of a publicly-traded company allowing the board of directors to issue new preferred stock without shareholder approval. Blank check preferred stock is usually an anti-takeover measure.
Mentioned in ?
References in periodicals archive ?
Greenlight sues Preferred dividends entered the cash debate after Apple included a proposal to investors to do away with so-called blank check preferred stock offerings, which can be issued without shareholder approval, in a government filing in December.